Debt Claims in Israel: What to Do If You Received a Letter from a Trustee

Have You Received a Debt Claim Letter from Israel? Here’s What You Need to Know

If you are a creditor outside of Israel and have received a letter from a trustee regarding a debt claim, it is crucial to act promptly. Debt claims in Israeli insolvency proceedings follow a strict timeline, and missing deadlines could result in losing your right to claim the debt. This guide explains the process, the required documents, and how to proceed efficiently with the help of an Israeli lawyer.

Understanding the Debt Claim Process in Israel

When an Israeli company or individual enters insolvency or liquidation, a court-appointed trustee is responsible for managing claims from creditors. If you have received a letter from a trustee, it likely means that the entity owing you money is undergoing insolvency proceedings, and you must

formally submit a debt claim.

Key Steps in Filing a Debt Claim in Israel

1. Understanding the Trustee's Letter

• The letter confirms that the debtor is in insolvency proceedings.

• It outlines instructions for submitting your claim.

• It provides the official deadline for submission.

2. Determining the Deadline

• Debt claims must usually be submitted within six months from the date the insolvency order was issued.

• Some cases have shorter deadlines mentioned in the trustee’s letter.

• If you cannot meet the deadline, you must file a request for an extension with an affidavit explaining the delay.

3. Gathering the Required Documents

• Debtor’s details and insolvency case number.

• Proof of debt and repayment details, such as loan agreements, invoices, or court judgments.

• Breakdown of the debt, specifying principal, interest, and any applicable penalties.

• Nature of the debt, clarifying whether it is secured (with collateral) or unsecured.

• Your creditor status, indicating if you are a supplier, employee, or another category.

• Guarantors or co-signers who may be liable for the debt.

• Banking details for payment, accompanied by an official confirmation from your bank.

• A sworn affidavit supporting your claim, notarized as follows:

  • If in Israel, sign before an Israeli lawyer.

  • If outside Israel, sign before an Israeli consulate representative.

• Power of attorney for an Israeli lawyer to act on your behalf.

4. Submitting Your Debt Claim

• The original documents must be sent to your Israeli lawyer.

• Your lawyer will submit the claim and monitor updates on your behalf.

5. Awaiting the Trustee’s Decision

• The trustee may approve, reject, or request additional documents for your claim.

• Approved claims join a creditor list for future debt distribution.

6. Final Settlement and Distribution

• After the insolvency process concludes, funds are distributed based on legal priority.

• Secured creditors receive payments first, followed by priority claims and general creditors.

Frequently Asked Questions (FAQs)

1. What happens if I miss the debt claim deadline?

If you fail to file your claim on time, you may lose your right to recover the debt. However, you can submit a request for an extension, accompanied by an affidavit explaining the delay.

2. Do I need a lawyer to file a debt claim in Israel?

While it is possible to submit a claim independently, having an Israeli lawyer ensures compliance with local legal procedures and improves your chances of claim approval.

3. How long does it take for a debt claim to be processed?

Processing times vary depending on the complexity of the case and the trustee’s workload. Claims can take several months or longer to be reviewed and approved.

4. Can I claim additional interest or penalties on the debt?

Yes, but you must provide supporting documentation outlining how the interest and penalties were calculated and that they are legally enforceable.

5. How will I receive payment if my claim is approved?

Once the insolvency process concludes and funds are distributed, payments will be made according to creditor priority. Payments are typically deposited into the bank account you provided.

6. What if the trustee rejects my claim?

If your claim is denied, you have the right to appeal the decision. An Israeli lawyer can assist in presenting further evidence or legal arguments.

Secure Your Debt Claim Today – Contact Me for Assistance

If you have received a debt claim letter from a trustee in Israel, take action now to protect your rights. I specialize in assisting international creditors in filing debt claims within Israeli insolvency proceedings.

✅ Fast & Professional Handling

✅ Ensuring Compliance with Israeli Law

✅ Maximizing Your Chances of Claim Approval

📲 Contact me via WhatsApp for Immediate Assistance

📩 Email me today to start the process

Don't risk missing your deadline – let’s secure your rightful claim efficiently and professionally!

The information provided above does not constitute legal advice and should not be considered a substitute for individual legal consultation. The content is a general and non-binding description. In any case, it is recommended to seek specific legal advice from a qualified attorney.

All rights reserved – Maor Romano, Law Office.